Will the iGaming Review Help to Protect Mobile Gamblers?

Posted by Harry Kane on Wednesday, September 27, 2023

There has been a great deal of speculation in response to the recently unveiled gambling review in the UK, especially regarding the potential scope of affordability checks in the industry and an online slot betting cap of just £2. While this review was inspired in part by the efforts of the All-Party Parliamentary Group (APPG) for Gambling Related Harm, many have suggested that it has much to do with the rising prevalence of smartphones and mobile wagering on these shores.

This has certainly increased accessibility to online casinos, while triggering a dramatic rise in the number of casual gamblers nationwide. In this article, we’re going to appraise the rising smartphone penetration rate and increase in mobile gambling throughout the UK, while also asking whether the recent iGaming review represents the best way to challenge habits and behaviours in the marketplace.

The Rising Popularity of Smartphones in the UK

Ever since the advent of the first iPhone in 2007, the demand for smartphones and subsequent penetration rates have grown exponentially across the globe. To this end, Statista reported that there are now around 6.92 billion smartphone users located throughout the world, with this equating to a total penetration rate of 85.95%.

Perhaps unsurprisingly, smartphone penetration rates are at their highest in the developed world, with UK offering a relevant case in point. In fact, the UK boasts the second highest smartphone penetration rate in the world at the time of writing, with this estimated to be in the region of 78.9%.

What’s more, the average Brit spends 148 minutes per day on a smartphone, carrying out an ever-increasing range of pastimes from browsing social media and shopping to wagering their hard-earned cash during the daily commute. Smartphones also drive up to 47.3% of all online traffic in the UK, which at least partially explains why mobile gambling is now so popular on these shores.

This trend is only going to become more prominent too over time, as it’s estimated that 100% of all Generation Z members now use mobile phones. So, it makes sense that the next generation of online gamblers will wager through their smartphones, creating subtle changes in terms of how online casinos and sportsbooks are designed.

Already, more than 50% of UK gamblers now regularly wager using their smartphones, with this percentage continuing to increase year-on-year. However, we expect this trend to accelerate in line with generation shifts, especially as Gen Z members continue to age and reach maturity.

The Correlation Between Mobile Gambling and the iGaming Review

The aforementioned iGaming review included a number of interesting proposals, with two in particular standing out. Firstly, it has been proposed that targeted affordability checks should be carried out on both younger players (aged between 18 and 24) and high rollers, especially those who wager significant amounts of money on a monthly basis.

Secondly, there have been moves to impose a fixed betting limit on virtual slots wagers, with this similar to the cap placed on Fixed-Odds Betting Terminals (FOBTs) back in April 2019. Once again, the initial review has recommended a potential cap within the range of £2 and £15, although operators are fearful that the regulator will settle at the lower amount as they did previously.

Speaking in Parliament, Lucy Frazer (the Secretary of State for Culture, Media and Sport) said that while “a flutter is one thing, unchecked addiction is another; so today we are bringing our pre-smartphone regulations into the present day with a gambling White Paper (policy document) for the digital age”. The reference to smartphone usage is telling, especially when you track the history of online gambling legislation back to its roots in the UK.

More specifically, the initial Gambling Act on these shores was launched in 2005, to coincide with the exponential growth of online wagering and remote sports betting. However, this comprehensive legislation was written two years before the advent of the smartphone, which accelerated the evolution of the digital age and triggered a change in how individuals access different types of content.

This has caused many to speculate that over time, the 2005 Gambling Act has simply become analogue legislation for a digitally dominated age, with the rapid growth in smartphone usage ensuring that the act has become outdated at a much quicker pace than expected. It’s clear that the legislature places a significant emphasis on smartphones, especially as they’ve also pledged renewed support to the brick-and-mortar gambling industry.

In fact, despite rolling out the restrictive FOBT cap more than four years ago now (the initial betting limit has been capped at £100), the government is now offering increased assistance for land-based casinos and arcades. This represents an interesting change in approach, and one that could adversely affect UK brands that operate exclusively online.

Will the iGaming Review Help to Protect Smartphone Gamblers?

Ultimately, the latter point makes for interesting reading, not least because it highlights the struggle that the legislature continues to face in adopting a balanced regulatory approach. In fact, it continues to yo-yo between off and online gambling crackdowns, seemingly unclear on how best to protect players in the digital age.

So, although the latest review may trigger the biggest overhaul of the iGaming industry on these shores, some concerns remain about its potential efficacy. Most importantly, cracking down on the iGaming space means little if it leads to deregulation of the offline gambling industry, as motivated or problem players will always find a way to indulge their pastime.

At the same time, it has been suggested that while targeted affordability checks may prove effective, a fixed cap on slots wagering may be both disproportionate and unnecessary. More specifically, this may not effectively safeguard problem gamblers in any meaningful way, while it could also unfairly sanction casual players and force them towards the burgeoning black market.